An Empirical Analysis Of The Marketization Of Interest Rates On The Performance Of Listed Banks

Marketization reform of interest rates is the inevitable outcome of the economic development to a certain degree,and it is also the inevitable requirement of China's financial reform.In the process of marketization reform of interest rates,commercial Banks are facing both opportunities and challenges.On the one hand,the marketization reform of interest rates promotes banking to have a structure transformation and to accelerate financial innovation;on the other hand,it also leads to a narrowed net interest,reducing bank performance,affecting the stability of the bank.It is late for China to start marketization reform of interest rates,but the speed of development is fast,under the condition of marketization interest rates,how to improve the bank performance and keep the stability of bank is a hot topic of research now.On the one hand,through the analysis of influence of interest rates on bank performance theory,the marketization of interest rates and combined with the Chinese actual situation,the paper explore the pathways as well as indirect effect that affect the bank's performance in China's interest rates market.On the other hand,the paper use the quantitative methods to study the influence of interest rates on bank performance,it found that the marketization of interest rates significantly influence the profitability of the listed commercial banks on the important time node through descriptive statistics and t-test.Secondly this paper used empirical model doing more rigorous tests,the results showed that the marketization of interest rates has a significant positive effect on the performance of listed commercial banks,the higher the degree of marketization of interest rates,the higher the listing Commercial bank's performance is,this benefits China's interest rate market.Then,using an empirical test through the marketization of interest rates on different types of listed commercial banks' performance.The results show that real GDP growth rate is a significant factor that influencing the large state-owned banks and joint-stock commercial bank performance;the deposit rate of listed city commercial banks is bigger,the return of assets'rate is greater.Finally,according to the empirical results,we put forward the following suggestions from the Banks and monetary authorities:Transform the business structure,meet the needs of era;Strengthen the control of interest rate risk,slow down the market risk;Enhance the management level of asset liability,strengthen the ability of product pricing;Establish the deposit insurance system,stable benchmark interest rates;Improve the system of financial regulation,constraints of bad management.